the grey border is likely due to Internet Explorer 6 not supporting transparency in .png files. More current version of Internet Explorer (7 and 8, as well as the upcoming 9) do display the images correctly, as do all competing browsers, such as Mozilla Firefox, Google Chrome or Opera.

It's strongly recommended you upgrade your web browser, as IE6 was launched in 2001 and does not compare with modern browsers in security, speed or functions.

We can apply a fix to your site to force the transparency, to do so contact support@magicdust.com.au and request it.